Amid the unrelenting U.S.-China trade hostilities, resource trade has become the latest arena of conflict. Ming-Hui Liao, an Assistant Research Fellow at the Chung-Hua Institution for Economic Research (CIER), noted that China’s recent expansion of rare earth export controls and the United States’ restrictions on imports of used cooking oil (UCO) indicate both parties are initiating a new round of strategic maneuvering with “resources as leverage,” thereby impacting the stability of global supply chains.
U.S. President Trump criticized China’s suspension of purchases of American soybeans as “economically hostile behavior” and threatened to terminate the edible oil trade. In reality, China has shifted toward procuring soybeans from South America in recent years to reduce its dependence on the United States, thereby frustrating American agricultural exports. Since April 2025, the U.S. has imposed high tariffs on Chinese UCO and revised its tax regime, resulting in shortages of raw materials for the American renewable fuels industry and a consequent increase in the costs of green fuels.
On the other hand, China announced the strictest rare earth export controls ever implemented in mid-October as a reciprocal response to U.S. technology restrictions. Given the heavy reliance of the U.S. military-industrial sector and semiconductor manufacturing on Chinese rare earths, short-term supply chain reconfiguration remains challenging and underscores the structural dependence of the global technology sector on Chinese rare earth supplies.
Ming-Hui Liao observed that rare earths and soybeans have become the “dual fronts” in U.S.-China economic and trade rivalry. Even following a slight easing of relations after the “Xi-Trump summit,” strategic antagonism persists unabated. For Taiwan, it is imperative to promptly establish strategic reserves of critical minerals and energy materials. Advancing diversified procurement and international collaboration will bolster supply chain autonomy and economic resilience, thereby ensuring stable development amid the global supply chain reconfiguration.
Author: CIER Editorial Team
Date: October 16, 2025